VALUATIONS – NEW ZEALAND
Standard applies to all inspections carried out after 1 January 1994.
It represents the views of the Council of the Institute and is
recommended that the Standard be adopted by members as a principle of
“best practice” for the valuation of all rural properties.
applies to all valuations and inspections of rural properties, other
than the specific exclusions set out below.
valuations should comply with the general provisions of the New
Zealand Institute of Valuers Valuation Standards.
properties to which this Standard does NOT apply are those in respect
of forestry valuations, small holdings, lifestyle blocks, traditional
Maori land, and agricultural enterprises.
The Valuer’s Roles
The valuer’s roles are:
to advise the client as to the market value (see paragraph 4.1)
at the date of inspection, or at any other (specified) date as
by the client;
to advise the client as to the nature of the property (see
section 3) and any factors likely to materially affect its value;
1.1.3 if required by the client, to provide a certificate of valuation
for insurance purposes.
The Valuer’s Inspection
2.1 An appropriate physical inspection of the land and improvements it
to be carried out in keeping with the requirement to assess the market
value of the property.
Certificate of title, lease etc.
valuer’s inspection is to include searching a copy of the
certificate of title and, if appropriate, the lease or any other
relevant title documents affecting the property to ascertain whether
the provisions of such affect the value of the property.
valuer’s inspection is to include ascertaining activities or
resource consents held or to be obtained, in respect of the property,
including existing and future resource management implications, other
local government requirements, restrictions or other relevant matters
under the Resource Management Act 1991.
The Valuer’s Report
3.1 The valuer is to supply the valuation in the form of a written
valuation report. Where the client specifically requires a verbal
report, the valuer should confirm the advice given in writing this
written confirmation to include the statement of non-compliance in
terms of paragraph 6.1.
3.2 A true copy of each valuation report together with the valuer’s
workings, should be retained by the valuer for a reasonable period.
3.3 A written valuation report may either be a form report or a
narrative report. It should be well presented in a logical and easily
The following should be the minimum content of a written report
A clear statement of the total value of the estate or interest
held in the land that is the subject of the valuation.
A statement of the purposes and function of the valuation; and
the source of the valuer’s instructions.
The effective date of the valuation.
The legal description, tenure, land area, lease terms and
conditions (if any).
A clear and reasonably complete description of the property being
valued, together with its general condition and development.
A clear statement of all matters relevant under the Resource
Management Act 1991.
A clear and reasonable summary of the market conditions upon
which the valuation is based.
Details as to the property’s situation or location, and advice
as to the territorial or regional authorities within whose
jurisdiction the property is located.
A summary of land use data including where appropriate:
type of production
highest and best use
soils and climate
including erosion or flooding limitations - altitude, aspect and
noxious weeds and
In relation to pastoral properties details of livestock carried
as at 30 June (or alternative where appropriate) with total
stocking summarised on a stock unit basis where applicable, and
or output together with the source of the data provided. Productivity
and carrying capacity should be related to district averages with
comment on the standard of management where this varies from the
i) In relation to horticultural properties where the income is
based on the cropping of the plant with a life span excess of two
of orchard or vine plantings including variety, age, root stock and
net planted area;
production details including yield and packout compared with district
averages with comments on management practice where this varies from
In relation to horticultural properties where the income is based on
crops of less than two years duration, and arable properties, comment
on rotation by variety, yields in relation to district averages; and
management practice where this varies from the norm.
Where a significant stand of commercial forestry is established
on the property include details of net stocked area, variety, age,
planting density, and practicality of harvest.
Comments on the soil fertility status where known and the
adequacy of any fertiliser programme followed in relation to the
or other productive measures, including the source of any information
on fertiliser application history.
A clear statement of any matters which have been specifically
excluded from consideration in arriving at the value of the property
(See section 5.0).
Any matters which may affect the value of the property as
disclosed to the valuer by a search and perusal of a current copy of
the certificate of title, lease or other document, should be
identified and commented upon in the report.
3.4.16 Where the valuer relies on information provided, this should be
clearly stated in the report, together with the source of the
4.1 Market value is the estimated amount for which the property should
exchange on the date of the valuation between a willing buyer and a
willing seller in an arm’s length transaction, after proper marketing,
wherein the parties had each acted knowledgeably, prudently and without
4.2 The valuation should set out the value of buildings, other
improvements, any fruit or timber trees, and the value of the land.
4.3 Where any valuation is determined by application of a
capitalisation or discount rate, the derivation of the rate must be
4.4 In all valuation updates the valuer should comment on any changes
to the property as to condition, productivity, or management.
4.5 The valuation should state that it does not include Goods and
Services Tax (if any) or other taxes.
5.0 The Valuer’s Record of Inspection
5.1 The valuer should
make and retain legible notes as to his/her findings and, particularly,
the limits of the inspection and the circumstances under which it was
6.1 The valuer is to state in the report if the valuation is not made
in accordance with this NZIV Practice Standard and give reasons for
such a departure.
Valuations which are completed under the authority of an Act of
Parliament may under certain circumstances be exempt from the
provisions of this NZIV Practice Standard.
1 January 1995